1 . KOM Chapter 8 , Question 4 : Go back to the model with firm performance differences in a single integrated market ( pages 172 - 175 ) Now assume that a new technology becomes available . Any firm can adopt the new technology , but its use requires an additional fixed - cost investment The benefit of the new technology is that it reduces a firm's marginal cost of production by a given amount 2) Could it be profit maximizing for some firms to adopt the new technology but not profit maximizing for oth er firms to adopt that same technology ? Which firms would choose to adopt the new technology ? How would they be different from the firms that choose not to adopt it ? D ) Now assume that there are also trade costs In the new equilibrium with both trade costs and technology adoption , firms decide whether to export and also whether to adopt the new technology Would exporting firms be more or less likely to adopt the new technolog By relative to nonexporters ? Why